Here’s my weekly chart with long-term swing/trend targets for the CVNA (Carvana Co.) pre-earnings short trade idea highlighted here in yesterday’s video. As with those two similar technical postures after putting in divergent highs on the long-term weekly charts followed by solid sell signals via breakdowns below the primary uptrend lines, CVNA recently provided a sell signal via the primary trend line breakdown & recently highlighted backtest following divergent high.
CVNA weekly Feb 20th
Now I’m waiting to see if this week’s bearish engulfing candlestick (which is so far developing) is confirmed at Friday’s close. All that matters when trading signals off the weekly chart (i.e.- trendline or price support/resistance level breakouts, bullish & bearish candlestick pattern, etc..) is how the weekly candlestick is finalized at 4pm on Friday.
As such, the next objective short entry or add-on will come late Friday if it appears likely that Carvana will close at or below 264.40, which is the bottom of the body (fat part) of last week’s candlestick.